Monday, February 4, 2013

In The Chop Zone

Indices sold off today by 1% or more.Understandably bears are jubilant and bulls are giving it a shrug.However do keep in mind, in Wall St. there is no bull or bear, only Weasels.

If you have read last few posts, you know that my upside target was 1510 in SPX and while we briefly crossed it last Friday, we have been moving in 10-15 points range. The 15 points sell off has not done any damage yet. The market is still on buy signal. That does not mean we have to buy. That simply means we are not going to short, yet.

The story is same with Gold and Silver. Moving in a range.Same with Crude.

We went for skiing last weekend and after coming back we see that nothing has changed. So we have decided to wait outside the ring and watch the show.

Subscribers know what level to watch for the sell signal and when not to front run. While we do expect February to be a great month we also know when not to jump and this is one of those times. In all likelihood those who shorted the market today will be disappointed tomorrow and those who go long tomorrow will be disappointed the day after. There is no play in commodity either.

Therefore , dear reader, let me repeat the old and tired formula: Cash is King